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Citic Pacific Sees $2 Billion Bad-Bet Hit

HONG KONG -- Citic Pacific Ltd. shares plunged 55% as the company scrambled to minimize the fallout from its admission that leveraged currency positions could lead to nearly $2 billion of losses.

On Tuesday, Citic Pacific, a Hong Kong-listed company with Chinese financial backing, said it had demoted or disciplined an unspecified number of employees from its finance department, including the daughter of Chairman Larry Yung. The company said it was in talks to sell all or part of its 56.67% stake in Dah Chong Hong Holdings...